WHAT WERE THEY THINKING???

At the corner of the highway and the road that leads into the town I live in, stands a statue commemorating the driving of the first spike in the CPR railway.  The statue depicts a railway worker dressed in the traditional garb of the day, overalls and cap, he carries a hammer in one hand and a spike in the other.  It seems a fitting statue for an old railway town.

 I wonder if the artist showed the town council a picture of his design or if he just told them of his idea?  Perhaps the council told the artist what elements they wanted included and left it to him (or her) to design. I wonder at what point if any, did someone see the flaw in the design? The fact that it was decided to erect the statue leaves me to wonder, what were they thinking?

Can you spot the flaw?